India beats China in business competitiveness

WASHINGTON: A World Economic Forum report has placed India ahead of China in business competitiveness rankings on the basis of the sophistication of operations by companies and the quality of the national business environment.

The Global Competitiveness Report 2003 by the World Economic Forum, however, showed that India slipped a little in the growth competitiveness index, moving from the 54th position in 2002 to the 56th slot.

China was placed 44th on the growth competitiveness index, which assesses a country's macro-economic environment, the quality of its public institutions and technology.

On the business competitiveness index, India was placed 37th, the same position it had in the previous year.

This put India above China, which languished in the 46th position, a fall from its 38th position in 2002.

Pakistan was 73rd in the growth competitiveness index and 75th in the business competitiveness index.

The report listed Finland ahead of the U.S. as the world's most competitive economy, with Sweden, Denmark and Taiwan in the third, fourth and fifth spots.

Singapore, Switzerland, Iceland, Norway and Australia occupied the next five slots.

In Asia, South Korea posted one of the most notable ascents in the growth competitiveness index, moving from 25th to 18th position. The report said Malaysia and India derived gains from improvements in the technology sector.

"Among the most notable downward shifts in the rankings was experienced by China. The country's plunge in the rankings was marked by a remarkable deterioration in the perceived quality of public institutions," the report said.

The implications of China's rapid economic growth, the report noted, had become a "much hotter topic" than in previous years, and people across the world were "wondering whether China can continue to grow so fast and how their own jobs and businesses will be affected if it does".

The number of countries surveyed this year rose from 80 to 102, as African nations were added to the study.